The equity put options I wrote against China Construction Bank (939) and Hutchison Whampoa (13) expired unexercised.This morning I entered into a new contract against Hutchison Whampoa (13).
Details are as follows:
Underlying: Underlying: Hutchison Whampoa (13)
Market price: $59.30
Strike price: $58.75
Valuation date: 21 November, 2009
Maturity date: 23 November, 2009
Implied yield: 16.53%
Net purchase price if exercised: $57.95
If I get hit I will have effectively purchased the shares at about a 2.3% discount to the prevailing market price. This is a share which I am happy to hold long term if I get hit.
As a side note, I would have made more money by buying and holding the underlying (even after transaction costs) rather than writing these options. While this is an exercise in increasing the yield on the cash component of the private portfolio, it is something to thing about.